Independent Insight Provider

Hao Wang, CFA

Thematic (Sector/Industry)

China Real estate / Thematic (Sector/Industry)

<p>China Evergrande (3333 HK) has quietly and quickly built up a near 7 percent interest in Vanke this month, while the intentions behind this purchase are still un-answered according to Vanke's management at recent press conference. This only complicates the existing shareholders battle/collusion among China Resource, Baoneng Group and Vanke's management. For more details, you can check my<a href="https://www.smartkarma.com/insights/so-vanke-seems-to-win-the-battle-against-baoneng-but-is-it-that-simple" target="_blank"> earlier coverage</a> on Vanke. This note would like to give you logics behind this purchase, and the implications for China's property markets based on that logic, which may affect your stock positioning and asset allocation in the next 3-5 years.</p><p> </p>

China Evergrande (3333 HK) has quietly and quickly built up a near 7 percent interest in Vanke this month, while the intentions behind this purchase are still un-answered according to Vanke's management at recent press conference. This only complicates the existing shareholders battle/collusion among China Resource, Baoneng Group and Vanke's management. For more details, you can check my earlier coverage on Vanke. This note would like to give you logics behind this purchase, and the implications for China's property markets based on that logic, which may affect your stock positioning and asset allocation in the next 3-5 years. 

Dalian Wanda Commercial Properties (1567411D HK)

Haitong Securities Co Ltd (A) (600837 CH)

Chongqing Rural Commercial Bank (3618 HK)

Shanghai Pudong Development Bank Co. (600000 CH)

Poly Real Estate Group Co., Ltd (600048 CH)

Grandjoy Holdings Group Co., Ltd. A (000031 CH)

China Merchants Property Develpmt (200024 CH)

Shanghai Lujiazui Finance & Trade Zone (600663 CH)

China Merchants Securities Co Ltd (A) (600999 CH)

China Pacific Insurance (Group) Co., (601601 CH)

Zhejiang China Commodities City Group Co (600415 CH)

Changjiang Securities Company (000783 CH)

China Merchants Securities Co Ltd (H) (6099 HK)

Logic Behind Evergrande Buying Vanke and New Phase of China's Property Markets